General Information

Chile continues to be the best risk in Latin America and has become the main example of a liberal economic policy, with economic growth coupled with budgetary discipline, and a very conducive climate for attracting investments; however it is a medium-sized market. The big point of discussion currently is to verify to what extent the liberal bases and the openness of The Chilean economy will be impacted by a new state model which should adapt to popular desires to improve public health and education services, and to combat inequalities.

Despite internal political and social issues, Chile remains an open market favorable to foreign investment with low customs duties (more than 90% of European products are exempt from customs duties – there is an agreement to Chile-EU economic association in force since 2003), a high quality of services for the region (the level of development of banking services, insurance, pension funds, IT and road information technology infrastructures is one of the best in America Latin), accompanied by interesting flexibility in the labor market.

The Chilean market offers good commercial prospects for capital goods and infrastructure intended for industry and the communications sector. The importation of certain goods, notably pharmaceutical and agricultural products, may be subject to some restrictions.

Chile is investing in the development of renewable energies. Particular emphasis is placed on wind farms and solar energy, the last of which has great potential and where there are already French investments present and, thanks to these parks, Chile is also the first country in Latin America with a potential for developing green energies. By drawing on its ever-increasing solar and wind energy capacities, Chile wants to position itself at the forefront of the development of green hydrogen. This is a goal of the Chilean state, as published in 2020 in the document “National Green Hydrogen Strategy”. The country is not only looking to generate green hydrogen to achieve carbon neutrality by 2050, be a green hydrogen exporter in the future.

Chile is part of the “lithium triangle”, a region bordering Argentina and Bolivia, which is said to have around 50% of the world’s reserves of this metal, which has become strategic in the production of batteries for electric cars.

Chileans are particularly aware of the distance between them and Europe, so it is important to respect the commitments made during meetings with Chilean entrepreneurs. Obviously, given the time difference, it is not easy to maintain a telephone relationship. However, it is necessary to impose the discipline of regularly reaching them and thus being aware of the various projects. Ideally, a local structure is the best solution.